WASHINGTON (dpa-AFX) - Crude oil surged on Wednesday as investors narrowed their focus on the Russia-Ukraine peace talks that began in the U.A.E. today and the upcoming U.S.-Iran talks in Oman. In addition, market participants analyzed the U.S. Energy Information Administration's inventory data release.
WTI Crude Oil for March delivery was last seen trading up by $1.97 (or 3.12%) at $65.18 per barrel.
The negotiations between the U.S. and Iran on Iran's nuclear program are set to be held on Friday in Muscat, Oman, according to Iran's semi-official news agencies.
Iran raised its disagreement in having the talks in Turkey, which was the initially proposed location.
Iran has sought for direct negotiations without any third-party mediation to which U.S. President Donald Trump's administration has agreed.
Notably, long back, after designating Iran as a sponsor of terrorism, the U.S. has truncated all diplomatic relations with the nation.
Meanwhile, the U.S. military announced that a Shahed-139 drone that approached the USS Abraham Lincoln aircraft carrier (docked near Iran under Trump's order) was shot down by a F-35C fighter jet while the drone attempted to 'aggressively' get closer.
After a few hours, in the Strait of Hormuz, an Iranian drone and two Islamic Revolutionary Guard Corps boats threatened to board and seize a tanker. After USS McCaul responded to the scene and escorted the tanker with air support, the situation de-escalated.
High-level officials from Russia and Ukraine commenced negotiations in Abu Dhabi, United Arab Emirates to discuss the U.S.-brokered peace proposal to end the drawn-out war.
The first round of meetings held last month in the U.A.E. did not yield any breakthrough.
Experts are closely watching the developments amid Russia's maximized demands on territorial concessions from Ukraine.
Tuesday's data from the American Petroleum Institute revealed that U.S. crude oil inventories plunged by 11.1 million barrels for the week ending January 30, extending a 0.25-million-barrel draw in the prior week.
According to the U.S. Energy Information Administration, for the week ending January 30, crude oil inventories in the U.S. fell by 3.455 million barrels. At the Cushing, Oklahoma delivery hub, inventories decreased by 743 thousand barrels. The commercial stockpiles are now at 420.3 million barrels.
For the same period, gasoline inventories rose by 685,000 barrels, distillate inventories decreased by 5.6 million barrels, and heating oil inventories fell by 160,000 barrels.
Trump signed the budget package forwarded by the House of Representatives in a close vote of 217-214.
Last week, the bill was approved by Senate, the upper chamber of the Congress.
After endorsing the legislation, Trump called it 'a great victory for the American people.'
This legally secures government funding until September 2026 for a majority of the departments except the Department of Homeland Securities.
The news supported the U.S. dollar on the upside, and the U.S. dollar index was last seen trading at 97.68, up by 0.25 points (or 0.26%).
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